Target (TGT, $167.47) earnings drop -90%
Target posted its second quarter earnings that plunged almost -90%, while missing analysts' expectations.
The retail giant’s earnings for the quarter came in at $0.39 a share, vs. $3.65 a share a year ago. The figure is also well below FactSet's consensus estimate of $0.79 a share.
Revenue of $26.04 billion, up from $25.16 billion a year earlier. Analysts expected $26.03 billion.
Gross margin narrowed to 21.5% from 30.4% a year ago, in part reflecting higher markdown rates mainly due to inventory impairments and actions to deal with lower-than-expected sales in discretionary categories, and higher shipping costs.
The company’s inventory was $15.32 billion in the second quarter, rising from $15.08 billion in the first quarter and $11.26 billion in the year-ago quarter. "While these inventory actions put significant pressure on our near-term profitability, we're confident this was the right long-term decision in support of our guests, our team and our business," Brian Cornell, Target's chairman and CEO, mentioned. In June, TTarget had cautioned that its profitability would be impacted due to its plans to lower prices in order to sell unwanted inventory.
Target projects full-year revenue growth in the low- to mid-single digit range. It is expecting operating margin rate in a range of around 6% in the second half of 2022.
TGT saw its Stochastic Oscillator peaks and leaves the overbought zone
The Stochastic Oscillator for TGT moved out of overbought territory on February 23, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 59 similar instances where the indicator exited the overbought zone. In of the 59 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TGT moved out of overbought territory on February 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for TGT turned negative on March 11, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TGT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TGT broke above its upper Bollinger Band on March 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 03, 2026. You may want to consider a long position or call options on TGT as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TGT advanced for three days, in of 305 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 240 cases where TGT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. TGT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.328) is normal, around the industry mean (8.317). P/E Ratio (14.610) is within average values for comparable stocks, (32.455). Projected Growth (PEG Ratio) (3.374) is also within normal values, averaging (2.772). Dividend Yield (0.038) settles around the average of (0.026) among similar stocks. P/S Ratio (0.516) is also within normal values, averaging (1.459).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TGT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock worse than average.
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a department and discount store
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